“Is LIC Offering Fixed Deposits? – Know the Truth”
There is a lot of noise online around “LIC Fixed Deposit Scheme,” and most of it blurs a very important distinction. Many investors are being led to believe that Life Insurance Corporation of India (LIC) itself is offering a special fixed deposit scheme by this name, which is simply not true.
No FD Directly From LIC!
LIC, the insurer, does not run any bank-style fixed deposit product under the name “LIC FD 2025” or any similar FD scheme under its own brand. Treating it as an LIC-backed fixed deposit can create a false sense of safety and lead to wrong product comparisons with bank FDs or post office schemes.
What “LIC FD Scheme 2025-26” Actually Is?
The product that is being widely marketed as “LIC FD 2025” is a corporate fixed deposit from LIC Housing Finance Limited (LIC HFL), a separate listed housing finance company promoted by LIC. LIC HFL offers a public deposit scheme called “Sanchay,” which is a regular corporate FD with its own terms, interest rates, risks, and credit rating profile, distinct from LIC’s insurance policies.
So, what are these Corporate Deposits? – The deposits placed by investors with companies for a fixed term carrying a prescribed rate of interest is called Company Fixed Deposit. Financial institutions and Non-Banking Finance Companies (NBFCs) accept such deposits.
Read : What are corporate or company Fixed deposit schemes? Are they safe?
When you hear “LIC FD,” your mind naturally associates it with the sovereign-like comfort and insurance-regulated framework of LIC, but the actual deposit is with LIC HFL, an NBFC–HFC regulated separately by RBI. Mixing up LIC and LIC HFL can lead investors to overestimate safety, misunderstand deposit insurance coverage, and ignore product-specific risks that apply to any corporate FD.
It is very likely that when the year 2026 arrives, some agents and intermediaries might market LIC Housing Finance Limited’s fixed deposit scheme as “LIC FD Scheme 2026” or simply as an LIC FD. This happens due to the association of LIC HFL with its parent company LIC, which leads to confusion and can be exploited in marketing to leverage LIC’s strong brand trust.
Hence, any corporate FD attributed directly to LIC is more likely an LIC HFL product, not LIC itself.
Here are key points to remember:
- LIC does not offer any FD schemes directly.
- The FD called “Sanchay” belongs to LIC Housing Finance, an entirely separate corporate entity.
- LIC HFL’s fixed deposit schemes are distinct financial products with different risk and return profiles compared to life insurance products.
- Do not trust claims equating LIC HFL’s FD schemes with LIC insurance or direct LIC FD products as they are inaccurate.
- Always verify the issuing entity of any investment scheme before investing, especially when similar names cause confusion.
If you want detailed information on the interest rates, tenure options, or credit rating of the LIC HFL fixed deposit scheme, please visit their official website.
(Post first published on : 26-Nov-2025)
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